Servalakshmi Paper IPO : ICRA gives 2 out of 5 Grade

Tamil Nadu based Servalakshmi Paper IPO has got 2 out of 5 by ICRA (rating agency) and this rating/grading is “Below Average Fundamentals” for a paper manufacturing company IPO. The grade 2 indicates that the fundamentals of the IPO are Below Average compared to the other listed securities in India. The company is entering into primary market with its maiden public issue (IPO) of —– Equity Shares of Rs 10 each. The premium of the issue will be decided through a 100% Book Building Process. Servalakshmi Paper is engaged in the business of manufacturing printing and writing paper and newsprint.

The IPO proceeds would be used for part finance the purchase of equipments for producing value added products which would be around Rs 25 crore, augmenting long term working capital requirement around Rs 30 crore, preliminary & pre operative expenses around Rs 5 crore, to meet the issue expenses and list the equity shares of the company on the stock exchanges.

The Equity Shares are proposed to be listed on the Bombay Stock Exchange Limited (BSE) and the National Stock Exchange of India Limited (NSE).

The Sole Book running lead managers to the issue is Keynote Corporate Services and Indian Overseas Bank.